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  3. No one disagrees with the economic necessity of geographically extending a product. Not only does it increase turnover but also

No one disagrees with the economic necessity of geographically extending a product. Not only does it increase turnover but also

admin2011-04-26  98
问题     No one disagrees with the economic necessity of geographically extending a product. Not only does it increase turnover but also it makes economies of scale possible, thus giving companies a competitive advantage in local markets. But how far do we push the global idea? Should we globalize all aspects of a brand: its name, its creative concept and the product itself?
    Global branding implies the wish to extend all three aspects throughout the world. Rarely, though, is it realistic and profitable to extend all of Ihem? The Mars brand, for instance, is not absolutely global. The Mars chocolate bar is sold as an all-round nutritious snack in the UK and as an energizer in Europe. Nestle adapts the taste of its worldwide brands to local markets. The Nescafe formulas vary worldwide.
    Nowhere is globalization more desirable than in sectors that revolve around mobility, such as the car rental and airline industries. When a brand in these sectors is seen as being international, its authority and expertise are automatically accepted. Companies such as Hertz, Avis and Europcar globalized their advertising campaigns by portraying typical images such as the busy executive. An Italian businessman will identify more with a hurried businessman who is not Italian than with an Italian who is not a businessman.
    The main aim of such global marketing campaigns is not to increase sales but to maximize profitability. For example, instead of bringing out different TV advertisements for each country, a firm can use a single film for one region. The McCann-Erikson agency is proud of the fact that it has saved Coca-Cola $ 90m over the past 20 years by producing commercials with global appeal.
    Social and cultural developments provide a favorable platform for globalization. When young people no longer identify with long-established local values, they seek new models on which to build their identity. They are then open to influence from abroad. When drinking Coca-Cola, we all drink the American myth--fresh, young, dynamic, powerful, all American images. Nike tells young people everywhere to surpass themselves, to transcend the confines of their race and culture.
    Globalization is also made easier when a brand is built around a cultural stereotype. AEG, BOSCH, Siemens, Mercedes and BMW rest secure on the "Made in Germany" model, which opens up the global market since the stereotype goes beyond national boundaries. People every’- where associate the stereotype with robust performance.
    Barilla is another example: it is built on the classic Italian image of tomato sauce, pasta, a carefree way of life, songs and sun. IKEA furniture epitomizes Sweden. Laneome expresses the sophistication of the French woman.
    Certain organizational factors ease the shift to a global brand. American firms, for instance, are naturally geared towards globalization because marketing in their huge domestic market already treats America as a single entity despite its social and cultural differences.
    Another organizational factor concerns the way US companies first expanded in Europe. Many set up European headquarters, usually based in Brussels or London. From early on Europe was considered a single and homogeneous area.
    Finally, a single center of production is also a great advantage. Procter & Gamble centralizes European production of detergents in its Amiens factory. This maximizes product standardization and enables innovations to spread to all countries at once, thus giving the company a competitive advantage over local rivals and ensuring the continued growth and success of the brand.
Why have American companies been so successful at globalization?
选项 A、They are good at adapting products to local tastes.
B、They choose good locations for European headquarters.
C、They are accustomed to selling to a large diverse market.
D、They always centralize production at a single factory.
答案C
解析
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